Slide 1: Q1 2023 Earnings Call & Webcast
Q1 2023 Earnings Call & Webcast TSX: AIF | May 4, 2023
Slide 2: Forward-looking information & statements
Forward-looking information & statements Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in Management’s Discussion and Analysis for the period ended March 31, 2023 (‘MD&A’), othe
Slide 3: Non-GAAP and other measures
Non-GAAP and other measures We use certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”).
Slide 4: Financial update
Financial update Pawan Chhabra Chief Financial Officer Q1 2023
Slide 5: Consolidated Q1 2023 performance
Consolidated Q1 2023 performance Q1 Q1 Year-over-year change $ CAD Millions 2023 2022 As Reported CC* Revenues $190.8 $167.6 13.9% 10.9% Profit (Loss) $(2.4) $(11.5) 78.9% 8 Basic EPS $(0.05) $(0.26) 80.8% consecutive quarters of double- Diluted EPS $(0.05) $(0.26) 80.8% digit topline growth 3 Adjus
Slide 6: Growing revenues & expanding margins at Analytics
Growing revenues & expanding margins at Analytics C$M Q1 2023: $120 30% As reported CC $100 25% Revenue $94.6M 17.8% 12.3% $80 20% Recurring Revenue* $85.3M 25.4% 19.5% $60 15% Adjusted $40 10% EBITDA $20.2M 80.0% 65.8% $20 5% Adjusted EBITDA 21.4% 740 bps margin* $0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Growing Analytics recurring revenue base
Growing Analytics recurring revenue base C$C$M (M) Recurring Revenue* $100 $90 $85.3 M Q1 2023: $80 $70 $60 19% $50 (y/y, CC) $40 $30 +90% of Analytics $20 revenues are $10 recurring $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 7 * Non-GA
Slide 8: Expanding Analytics margins
Expanding Analytics margins Adjusted EBITDA margin* 30% Q1 2023: 21% 26.9% 25% 410 bps y/y 23.9% 20% 21.4% 20.7% Adjusted EBITDA 16.6% 16.8% margin* 15% 14.0% 10% 740 bps y/y 5% 0% FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 8 * Non-GAAP and other financial measure
Slide 9: Property Tax performance
Property Tax performance C$M Q1 2023: $100 46% 50% 44% 45% $90 45% As reported CC $80 40% 35% 22% Revenue $66.7M 14.1% 13.2% $70 32% 35% 30% 23% 29% $60 20% 21% 20% 30% 26% $50 Adjusted 25% EBITDA $15.1M 13.3% 14.1% $40 20% $30 15% Adjusted $20 10% EBITDA 22.6% 20 bps margin* $10 5% $0 0% Q1 Q2 Q3 Q
Slide 10: Appraisals & Development Advisory performance
Appraisals & Development Advisory performance Q1 2023: C$M $35 25% 14% 19% 10% 15% 14% 17% As reported CC 10% $30 17% 14% 10% 14% 10% 12% 20% Revenue $29.7M 2.5% 2.3% $25 15% $20 Adjusted EBITDA $3.0M 2.2% 2.3% $15 10% $10 Adjusted 5% EBITDA 10.0% 10 bps $5 margin* $0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 11: Healthy balance sheet enables continued investment in growth
Healthy balance sheet enables continued investment in growth CASH FUNDED DEBT TO $42.9 M POSITION 2.21x EBITDA RATIO BANK NET DEBT TO $350.1 DEBT 2.13x ADJUSTED EBITDA RATIO* 11 * Non-GAAP and other financial measure | All figures are as at March 31, 2023
Slide 12: Operational update
Operational update Jim Hannon Chief Executive Officer Q1 2023
Slide 13: Steady ARGUS Cloud adoption
Steady ARGUS Cloud adoption Cloud Adoption Rate* 80% 70% 67% 60% 50% 40% 30% 20% 10% 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 13 * Non-GAAP and other financial measure
Slide 14: Adding new bookings at Analytics
Adding new bookings at Analytics New Bookings* Q1 2023: C$ (M) $40 $35 28% Total New Bookings* $30 (y/y, CC) $25 $21.4M $20 $15 31% $10 $14.1M Recurring New Bookings* RECURRING NEW $5 BOOKINGS* (y/y, CC) $0 New Bookings includes new signed Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 contracts and additio
Slide 15: Positive client engagement at Altus Connect
Positive client engagement at Altus Connect Promotional video: https://youtu.be/LKM58nDxJmA
Slide 16: Resilient business model provides stability
Resilient business model provides stability Appraisals & Development Advisory 16% APAC, 4% Trusted by the largest CRE leaders EMEA, Diversified 21% Canada, 31% Equity Debt Valuers & Banks revenue base Property Analytics 49% Investors Investors Appraisers Tax 35% Developers Corporates Brokers U.S., 4
Slide 17: Well positioned for sustained growth in 2023
Well positioned for sustained growth in 2023 BUSINESS OUTLOOK FY 2023 PERFORMANCE EXPECTATIONS CONSOLIDATED • Sustained Revenue & Adjusted EBITDA* growth ANALYTICS • Double-digit revenue growth and expanded Adjusted EBITDA margin* • U.K. annuity Revenue stream resets in 2023; cyclicality to cause Re
Slide 18: Question period
Question period For additional inquiries please email IR@altusgroup.com
Slide 19: Appendix
a AltusGroup Appendix
Slide 20: Notable disclosure changes
Notable disclosure changes B U S I N E S S N O M E N C L AT U R E C H A N G E S : Introduced in 2022 Annual Report published in February 2023 Legacy New Reflects more conventional labels that more accurately describe the metric in Over Time Revenues = Recurring Revenue line with its existing definit
Slide 21: Steady profitable revenue growth
Steady profitable revenue growth * 21 * Non-GAAP and other financial measure
Slide 22: 2023 strategic priorities
2023 strategic priorities With a strong foundation in place, we’re moving from business transformation to scaling profitable growth 1. Scale Altus Group Accelerate the expansion of Altus Group by defending and extending our core businesses and reaching into new market segments. 2. Operate efficientl
Slide 23: Selected financial information
Selected financial information Selected Financial Information Quarter ended March 31, In thousands of dollars, except for per share amounts 2023 2022 Revenues $ 190,824 $ 167,584 Canada 31% 31% U.S. 44% 43% EMEA 21% 21% Asia Pacific 4% 5% Adjusted EBITDA* $ 26,528 $ 17,741 Adjusted EBITDA margin* 13
Slide 24: Reportable segment performance
Reportable segment performance Revenues Quarter ended March 31, Constant In thousands of dollars 2023 2022 % Change Currency % Change Analytics $ 94,644 $ 80,310 17.8% 12.3% Property Tax 66,684 58,468 14.1% 13.2% Appraisals and Development Advisory 29,712 28,981 2.5% 2.3% Intercompany eliminations (
Slide 25: Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings
Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings (1)Management uses the non-GAAP occupancy costs Quarter ended March 31, calculated on a similar basis prior to the adoption of IFRS 16 when analyzing financial and operating In thousands of dollars, except for per share amounts
Slide 26: Debt, leverage & liquidity
Debt, leverage & liquidity Funded debt to Adjusted Net debt to Adjusted Quarter end Cash position Total bank debt EBITDA ratio EBITDA ratio* Liquidity as at March 31, 2023: Q1 2023 $42.9 M $350.1 M 2.21x 2.13x Cash $42.9 M Q4 2022 $55.3 M $319.6 M 2.13x 1.96x Q3 2022 $46.6 M $324.0 M 2.29x 2.20x Ban
Slide 27: Summary of consolidated quarterly results
Summary of consolidated quarterly results 2023 2022 2021 In thousands of dollars, Mar 31 Fiscal 2022 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2021 Dec 31 Sep 30 Jun 30 except for per share amounts Results of Operations Revenues $ 190,824 $ 735,451 $ 183,762 $ 177,691 $ 206,414 $ 167,584 $ 625,387 $ 162,90
Slide 28: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disc
Slide 29: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Net debt to Adjusted EBITDA leverage ratio: Altus Group uses Net debt to Adjusted EBITDA leverage ratio as a measure of its ability to service debt and other long-term obligations. How it’s calculated: Net debt (total borrowings less cash and cash equivalents,